Skip to comments.One trillion dollars have flowed into the American economy as Trump’s tax law changes allowed companies to repatriate profits without tax penalty
Posted on 12/27/2019 5:34:53 AM PST by SeekAndFind
President Trump’s tax reform has delivered more than a trillion dollars of stimulus to the American economy through corporations repatriating profits held overseas in order to avoid penalties that the tax law had imposed on bringing home the funds earned abroad. Bloomberg reports:
Corporations have brought back more than $1 trillion of overseas profits to the U.S. since Congress overhauled the international tax system and prodded companies to repatriate offshore funds, a report showed Thursday. (snip)
Investment banks and think tanks have estimated that American corporations held $1.5 trillion to $2.5 trillion in offshore cash at the time the law was enacted. Before the overhaul, companies were incentivized to keep profits overseas because they owed a 35% tax when bringing it back and could defer payment by keeping funds offshore. The law set a one-time 15.5% tax rate on cash and 8% on non-cash or illiquid assets.
Compare and contrast the way that Presidents Trump and Obama chose to stimulate the American economy, each of them generating roughly a trillion dollars in “stimulus.”
Under Obama, federal, taxpayers ponied up almost a trillion dollars that was disbursed to various projects deemed worthy. Obama initially claimed that “shovel ready” projects would be the main beneficiaries, only to later realize (or admit) that few such immediate opportunities existed, and that the regulatory jungle meant that new projects would take years to be run through the gauntlet of obstacles that federal, state, and local jurisdictions impose on construction. Instead, the major recipients were government employees whose salaries and benefits were funded by the “stimulus.”
The cost to taxpayers: $831 billion. But schoolteachers and bureaucrats (and their unions) did get paid, and a few worthy projects were built.
President Trump, by contrast, generated additional revenue for the federal budget
(Excerpt) Read more at americanthinker.com ...
The $Trillion plus budget deficits continue with interest payments on debt climbing every year.
Revenue can flow in as it is, but if your SPENDING far exceed revenue as it does in our country, your deficits ( and eventually debt to cover the deficits ) will continue to climb.
The details of this provision are extremely interesting. The income tax o these repatriated earnings are not even 100% payable in the year of repatriation. I think the spread is like 8 YEARS! And NO interest.
I was amazed when I got into some of the details.
Makes it even easier to acknowledge the hypocrisy of business leaders who disparage Trump.
We wanna drill for oil!
We wanna drill for oil!
DRILL, baby! BRILL !!!
Its as easy as “Yes, you are free to pursue your hapiness.”
“NO! You cant do that without oversight and regulation!”
The house lives in has lights out not answering door but car is in drive way,humming sound coming from basement.
One down and two to go?
Correct, but will volunteer to take benefit cuts? Old geezers? People on food stamps? Military-Industrial complex? May be, just may be, Trump in his 2nd term will have a pair to instigate spending cuts, and if that happens, I can bet on another round of articles of impeachment if the Rats hold on to the House.
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